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This blog was written by Ballard Power Systems President and CEO Randy MacEwen.

Coming off a recent business trip to China, I wanted to share my thoughts on the rapid and significant progress we’re seeing in hydrogen and fuel cell activities in China in the past few months. This past summer has been a busy one for Ballard in the region.

During these government meetings, I had the opportunity to share Ballard’s recommendations for advancing the commercialization and scaled adoption of fuel cell vehicles in regions throughout China.

These recommendations include the establishment of a “30 by 30” fuel cell policy – meaning that 30% of all electric mass transit buses and commercial trucks will be Fuel Cell Electric Vehicles (FCEVs) by the year 2030 – as well as the formalization of appropriate policies and funding support for hydrogen fueling infrastructure.

Government representatives have been receptive to these ideas, recognizing the significant potential positive economic and environmental impacts of the hydrogen and fuel cell industry.

We continue to see important progress in China. At the federal level, China is now studying a timeline to completely ban diesel and internal combustion engines in transportation.

At the provincial level, we are seeing strong commitment from Guangdong, Jiangsu and Shandong provinces.

At the city level, we are seeing increasing leadership to address air quality by reducing vehicle emissions. In particular, Shanghai is leading the way with a visionary and landmark fuel cell initiative. Indeed, Shanghai has laid out the most comprehensive and aggressive city plan in the history of fuel cell vehicles.

Shanghai Fuel Cell Vehicle Development Plan

The Shanghai Fuel Cell Vehicle Development Plan calls for the annual production of more than 15 billion RMB in annual output throughout Shanghai’s fuel cell value chain (more than US$2.25 billion per year) by 2020. The Plan targets a number of key deliverables by 2020, including:

Cost Reduction Through Volume

In these aggressive production targets, policy makers have recognized the significant cost reduction potential that comes with mass manufacturing volume and associated economies of scale.

At Ballard, we will continue to lead industry and do our part to advance fuel cell adoption. We are working on next generation technology and collaborating with our partners to support the delivery of FCEVs in key market applications, including fuel cell buses, that will be cost competitive with battery powertrains – while offering much higher value on range, refueling time, route flexibility, and weight .

We also expect these FCEVs to have lower operating costs than a diesel bus while offering zero tailpipe emissions and a quiet and smooth driving experience.

While we are driving hard with our OEM and ecosystem partners to achieve our cost reduction targets, increased market demand and manufacturing volume will be key success factors in meeting these objectives. The Shanghai Fuel Cell Vehicle Development Plan accounts for this reality.

We are currently supporting Broad-Ocean’s subsidiary, Shanghai E-Drive, in setting up a final engine assembly facility in Shanghai (and other key centers in China). This facility will play a key role in meeting Shanghai’s production goals. We are also exploring additional opportunities to strategically position Ballard in the attractive Shanghai market.

Conclusion

We are excited by the vision and leadership reflected in the Shanghai Fuel Cell Vehicle Development Plan. The Plan represents a strong commitment to the commercialization of fuel cell vehicles in China’s largest city as an important measure to address air quality. Ballard is well positioned to be an important player in the execution of this milestone Plan.

Of course, hydrogen fuel cell development plans are not limited to Shanghai within China. In the past two years, relevant government ministries and commissions in China have issued policies that strongly support the adoption of FCEVs. In addition, the discussion has expanded to the complete phase-out of fossil-fuel vehicle sales. We see clear FCEV opportunities for buses, commercial trucks, and rail.

Other regions have taken notice of China’s decisive actions and are considering following suit. France and the UK have plans to eliminate fossil-fueled vehicles, and now the California government has expressed interest in a similar move. And, last year’s formation of the Hydrogen Council – founded by sixteen of the world’s most important companies in the fuel sector – is already proving to be an important development.

What do you think?

Do you think it is time for other regions to follow China’s model and take wide-sweeping action to address air pollution from transportation? What do you think about Shanghai’s plan?

As an industry, what can we do to encourage other cities to adopt similar development plans to facilitate the wide-scale adoption of hydrogen fuel cell technology?

Join the discussion and let us know your thoughts below and on social media.

Reach out to us @BallardPwr on Twitter.

solarwind hydrogen

What can you do to encourage other cities to adopt similar development plans? Beyond making an offer to save money by investing in a fuel cell program, the key is to MAKE CITY VEHICLE OPERATORS HAPPY USING SUPER CLEAN & QUIET & POWERFUL HYDROGEN FUEL CELL VEHICLES. That's basically all that needs to be communicated to the right people in any city planning department. Randy, you can send me a big check anytime for this big advice. Just joking, good luck!

Catharine Reid

We completely agree! The 25,000 hour performance of the fuel cell modules operating in London buses is an important industry and corporate milestone that will convince customers of the benefits.

Jesus Giraldo

Hello Catherine,
As well as you already know we are able to develop commercial rapports at cities around Colombia to set up the new hydrogen fuel cell technologies.
Please, kindly let us know how can we work together to have many other clean energy fuelled transport cities here in Colombia.
We have the experience and the economic muscle to develop the market for Ballard's technology for world's environment benefit.
Thanks.
Jesus Giraldo

Joseph Pisco

I can't remember when I bought my first Ballard shares. I have been optimistic thru some trying developments. Lately it has been the interest in battery electric cars. But my position in one of the largest producer of Lithium has lifted some of the worry. The supply of lithium will not match the potential demand in the full sweep of auto/electric/electronic industry; the weight of the batteries, the charging stop durations, leaves big incentives for bringing Fuel Cells along. H2 is abundant.
During low power demand H2 is a great solution for storing power that would otherwise be lost. Battery Power Storage schemes are expensive and place additional demand on Lithium. We are solidly in the vehicle power-pack game..
Joseph F Pisco
PS: Thank you, Catherine. China may be the template for worldwide efforts.

Siphiwe Mlangeni

This is absolutely impressive technology. South Africa is ready and in need to this technology. This would also be a gateway for the technology to reach the rest of the African continent. My company would like to form a joint venture with Ballard in order to introduce hydrogen fuel cell technology to Africa

Catharine Reid

Thanks for your comment, Siphiwe. South Africa is very active in fuel cell development and deployment. Please contact Ballard at marketing@ballard.com with additional information about your company and we'll discuss possible opportunities.

Rich Marty

Start romancing a multinational company to buyout Ballard for wide sweeping changes to happen. Ballard has too few sales personnel, too small a budget and too quiet of a bullhorn for any cities to do more than take notice of what China might be doing.

Catharine Reid

Thanks for taking part in the discussion, Rich.

Rich Marty

Alternatively, Ballard can hire many, many more sales personnel; invest larger dollars into sales incentives and shout from every rooftop East and West of China what Ballard’s sales personnel can bring to every city. Don’t forget that useful and needless are bought from a salesperson. Without enough salespeople, it’s an undervalued product.
Hire more Salespeople.

Mark Friel

I am happy to be an investor in such a great company. I am a firm believer that the world will eventually based on a hydrogen economy. Hopefully sooner rather than later. I think that Ballard should offer Brewster transportation hydrogen buses for their Columbia ice field operations in Banff National Park. It would be an amazing fit, glacier tours in big diesel snow coaches makes no sense. A joint venture with Brewster, Parks Canada and Ballard would gain immediate international attention.

Catharine Reid

Thanks for your suggestion, Mark. Zero-emission buses operating in our parks make a lot of sense.

Mark Friel

Thanks

Pierre Vindevogel

It is the most fantastic economic development since world war two(europe) and I hope that your firm will encourage the Belgian Government to take those decisions likewise Shanghai. And above all it's importent for humanity and a clean and sound invironment on earth.

Catharine Reid

Thanks, Pierre!

douglas weiss

I live in the North Georgia mountains. I walk on a road lined with trees. The air is dee=breath pure. When the occasional old car or diesel pick-up truck passes I smell the sickening exhaust..it can't be missed! I am convinced the urban population is marinating in a poisonous stew. The health implications are staggering. I would like to read a lot more about Hydrogen being sourced with electrolysis combined with wind and solar. I see a readily available, infinite fuel source and the means to employ it. Fuel Cell are real and ready and the need for pollution free energy in now!

Catharine Reid

You make a good point, Douglas. You might be interested in reading our recent white paper that looks into how hydrogen is being generated from renewable sources in Scandinavia. It's available here: http://info.ballard.com/fuel-cell-buses-scandinavia-whitepaper

Denis Saudino

I am truly, a believer in hydrogen fuel cell technology. Hydrogen will play an invaluable role in our goal to save this planet.we see and hear almost on a daily basis the ravages of global warming. The darkness of our existence now has a light showing that " WE CAN MAKE A BEAUTIFUL BETTER WORLD ". I see Hydrogen fuel Cells in the Future powering almost everything,from lawn mowers to jumbo airplanes and even the largest Ships.
It will bring us into a new and exciting age, THE OLD INDUSTRIAL AGE OF CARBON FUELS IS ON ITS LAST LEGS. Thanks to Ballard and China.
Keep up the great work," YOU GIVE HOPE TO THE WORLD ".
N

Catharine Reid

Denis, thanks for your support!

Peter Jort

The thought that comes to my mind is the need for production facilities in North America and Europe, even though Canada and the US are not interested in this change over from fossil fuels as of yet, the day is near that they will be rushing to catch up.
Also, the further along we advance, world wide, the greater will be the demand, the general population is gaining consciousness of global warming causing much more pressure than just the few that have been crying in the wilderness until now, I see an increase in growth, not measurable until now.
You're doing great work Randy, you deserve all the accolades I can muster.
Thank You
peter jort

Catharine Reid

Thanks, Peter. North America is definitely playing catch-up when it comes to the deployment of clean energy vehicles.
Ballard's Canadian facilities are focused on our core fuel cell competencies, which include the production of membrane electrode assemblies, integration and testing of fuel cell stacks, assembly and testing of motive modules, as well as support of other products required through our engineering services contracts. We continue to make investments in our manufacturing capabilities and processes which are targeted at supporting high volume production and automated processing to facilitate future growth.

Chris Efremidis

Yes I do! Currently also involved in significant fuel cell activities as director of powertrain at Bosch Engineering North America.

Catharine Reid

Great to hear, Chris. Please reach out to us at marketing@ballard.com if you need specifics about our fuel cells for motive applications.

Kevin Kendall

Very significant post. I will be in Shanghai in Oct 2017 and will be looking at the progress in hydrogen fuel cell buses and other vehicles.

Catharine Reid

Enjoy your trip, Kevin! I'm sure you'll be impressed by the volume of hydrogen and fuel cell industry activity happening throughout the country.

Shyamsunder

Randy MacEwen Amazing work. I read about this article while transiting in Hongkong last weekend. This is the true need of the hour thinking. Like FCA’s CEO Sergio Marchionne said recently “ not correct to go full EV and that impact on the environment is bigger”. Randy’s push for 30-30 fuel cell push is probably the need of the hour. This is an amazing cause to work for. Super

Gary Sachs

I have been an avid fan and investor since watching Ballard's former CEO in 1999 demonstrate a fuel cell Mercedes on CPTV show called Technology 2000. He declared that we now have the technology to commercialize. Well it has been an exciting ride and I am happy and gratified to see the vision coming to fruition.

jan vander haegen

Ballard is for me the standard in the H²-industry and as a shareholder I am very happy to be part of this vision for a clean and breathable world for our children.Investing in Ballard is ethic en a proof of your willingness to improve the health of our children. Ballard,may the force be with you !!

David Reynolds

I remember back in the late 80's General Motors built a research for fuel cell technology in our small town near Rochester New York. They closed it after a few years. They new the potential but was way ahead of it's time.I thank you for your vision to the future.